Business

Japanese Trading House To Invest In Renewables Sector

Itochu Corporation’s $2 Billion Renewable Energy Fund For US & Canada Achieves First Closure

Anu Bhambhani
  • Itochu has established a renewable energy fund with $2 billion commitment
  • The idea is to provide opportunities to institutional investors, especially from Japan to invest in North American renewable energy assets
  • It will be managed by the Japanese company's local US presence and wholly-owned subsidiary Tyr Energy

Leading Japanese business group Itochu Corporation has set up a $2 billion fund dedicated to the renewable energy industry in the US and Canada. It aims to provide 'prime investment opportunities' mainly to Japanese institutional investors in the fast growing renewable energy market in North America.

The fund Overland Capital Partners is to be managed by Itochu's wholly-owned subsidiary Tyr Energy that will invest in renewable energy generation assets in North America as a general partner (GP) through its newly established subsidiaries.

Tyr Energy is already invested in over 30 US power plants, including 8 related to solar and wind assets. It is also developing close to 20 solar assets with a combined 2 GW capacity through Tyr Energy Development Renewable.

Another Itochu subsidiary, Washington headquartered NAES Corporation provides operation and maintenance services for power plants, including for 50 GW thermal and 2 GW solar power plants.

Itochu said it has already achieved first closing for the fund for which it has been working with the Sumitomo Mitsui Trust Bank of Japan.

Earlier this year, Itochu said it will supply solar power for Amazon's 700 sites in Japan with an aggregate capacity of 70 MW DC/38 MW AC through a portfolio company called Clean Energy Connect (see Amazon Picks Itochu For Japanese Solar Energy PPA).